PUTTING YOUR WORKERS IN ALL THE RIGHT PLACES PLANNERS PUSHING HOUSING ASSISTANCE TO EASE COMMUTE

Difficulties in getting from here to there have hindered many a job-seeker, so regional planners are trying to keep the distances between work and home as short as possible.

The Northeastern Illinois Planning Commission (NIPC) is pushing employer-assisted housing programs that help move employees into the neighborhoods where they work.

Most programs to secure housing for employees have been aimed solely at executives, said Margaret Sachs, NIPC senior planning analyst, but more recently, a few employers and non-profit institutions have targeted employees at all income levels.

NIPC is advocating that more employers get involved in what the regional planning group describes as a win-win situation: Employees receive aid-forgivable loans, low interest loans or grants-to purchase a home, while employers use the programs to recruit and retain good workers.

The need for employer-assisted housing has become more evident with the increasing number of jobs in the suburbs, according to NIPC figures. As more employees are forced to commute greater distances, absenteeism rises and workforce stability is lost, the group says.

Ms. Sachs has been touting employer-assisted housing to a number of regional employer groups, including the Lake County Economic Development Commission and the East West Corporate Corridor Assn.

Employers are willing to listen, she says, although most are interested solely in the cost of the programs.

That can be frustrating. "If you look at the training costs of having to replace workers and add in the costs of lost days when the weather is bad or late time for workers stuck in traffic, you can see it is in the employers' best interest to participate," she said.

Few programs exist in the Chicago area. One of the most expansive is at Wheaton College, the Christian liberal arts school in the west suburb.

The college last month approved an overhaul of its employer-assisted housing, looking to strengthen its recruitment, said Business Manager Steve Mead.

For new employees, the college offers down-payment housing loans of 30%, up to $50,000 on a 15-year secured second mortgage. Principal and interest are deferred until the end of the 15-year term, with interest accruing to principal at the rate of 4% per year.

At the end of the 15 years, if the employee can't pay off the mortgage, an amortization schedule will be set up for the next 15 years at a first-mortgage interest rate.

The program "allows us to draw our faculty from across the nation," said Mr. Mead. "Once they get here, it keeps them."

The college expects about 10 to 12 new hires per year to take advantage of the loan program. The annual cost to the college is about $260,000, with $6 million of capital tied up, he estimated.

While not precisely what NIPC is looking for-the agency's thrust is to bring city residents closer to suburban jobs-the Wheaton program comes close. All loan recipients are strongly urged to locate in Wheaton or in nearby western DuPage suburbs.

At Loyola University in Chicago, under a 17-year-old "walk-to-work" program, repayable loans up to $8,000 are available to faculty and staff at 6% interest for up to five years. Loans are repaid through a payroll deduction plan, and home purchases must be made within walking distance of the university's North Side campus.

Over the years, 183 loans have been made, with only one default.

Despite such examples, general housing assistance for lower-level workers is not prevalent even in relocation, said David Friedlen, a consultant at Runzheimer International in Rochester, Wis., which tracks employee benefit and relocation issues.

Across the country, 90% of employers reported offering 401(k) retirement plans that can be used as collateral for housing loans rather than any specific housing assistance, Mr. Friedlen said.

In a nationwide survey of 286 companies conducted by Runz-heimer, 64% of respondents said they offer equity advantage loans with low or no interest, and 20% provided mortgage loan assistance, which most often covered home sale costs or sales assistance.

NIPC's Ms. Sachs points out that New York-based Colgate Palmolive Co. provides mortgage assistance to its employees across the country, and forgivable loans are available to employees of Church & Dwight (maker of Arm & Hammer products) of Princeton, N.J., if the employees settle in the immediate area and agree to stay in the house for at least five years.

But no Chicago-area private-sector employer has a program up and running, or has signed up after hearing Ms. Sachs' talk.

She's still optimistic, however.

"It's a fairly new program," she said.

And, it seems, a necessary one.

"NIPC within the last year adopted a strategic plan for land use management," she explained. "We are trying to eliminate the job mismatch."